Xinhua, the Chinese government news agency, has published an article entitled: "Let's urgently eliminate the hype and chaos around virtual currencies." It details the risks associated with the trading and circulation of cryptos: market, transactional, technological and legal. Chinese authorities have stated:
"Cryptos carry the risk of large losses for investors and can affect the financial stability of the state and public order. It is necessary to stop the chaos in the virtual currency market."
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The Chinese authorities assure investors should not trade bitcoins, and financial and payment companies should not support such activities. The government of the People's Republic of China believes it is necessary to strengthen the fight against mining and trading of cryptos, as well as to create better conditions for the issuance of the digital yuan. The authorities have reminded of the responsibility of companies that continue to participate in the cryptocurrency industry in spite of the ban.
China Liu, Vice Premier of the State Council of the People's Republic of China, has previously called for stricter regulation of crypto mining and trading. A few days earlier, the country banned financial companies from offering crypto-related services.